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6. When the inflation rate in the economy increases, the level of interest rates in the economy generally declines. 7. A downward sloping yield curve
6. When the inflation rate in the economy increases, the level of interest rates in the economy generally declines. 7. A downward sloping yield curve (i.e., an "inverted" or "abnormal" yield curve) is often a sign that the economy is weakening. 8. The conversion feature of a convertible bond allows the bondholder to exchange the bond for a specified number of shares of common stock. 9. Most corporate bonds are purchased and held by individual investors. 10. Rising interest rates in the economy reduce the market value of outstanding bonds. 11. Holders of debt instruments, such as bonds, have a voice in the management of the corporation, as they are given one vote for each bond held
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